Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Q3 2015 Earnings Presentation
26 slides from Peoples Bancorp's earnings presentation, Nov 3, 2015
Slide 1: Investor Presentation 3rd Quarter 2015
y Peoples ¢), Nasdaq: PEBO Investor Presentation 3'4 Quarter 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation which are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Ac
Slide 3: Corporate Profile
Corporate Profil * Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot — Assets: $3.2 billion — Loans: $2.0 billion — Deposits: $2.5 billion — Market capitalization: $398 million — Assets under Managemen
Slide 4: Investment Rationale
Investment Rationale € * Unique community banking model — Greater revenue diversity for a community bank our size (80% to 3.5% fee-based) — Strong community reputation and active involvement — Local market teams capable of outmaneuvering larger banks — More sophistication and product breadth than sm
Slide 5: 2015-2016 Outlook
2015-2016 Outlook ¢ Maintain efficiency ratio of 65% — Core expenses beat quarterly rn rate target of $26.5 million in Q3 providing an adjusted ratio of 65.38% — Targeting 65% efficiency ratio m Q4 and for 2016, driven primarily by continued. expense management * Continue driving organic loan growth
Slide 6: Outlook (continued)
Outlook (continued) ‘ay ¢ Return to top-quartile asset quality — Net charge-off rate of 15 bp m Q8 and 9 bp year-to-date — Anticipated resolution of problem C&I loan in the fourth quarter retumming provision to normalized levels — 2016 net charge-off rate forecasted at 15 - 2.5 bp, well below histor
Slide 7: 2015 Core Operating Expenses Beat Q3 Target by $0.6 million
2015 Core Operating Expenses a Beat Q3 Target by $0.6 million we $27,658 $26,500 $26,500 $25,920 i g $23,502" ofl! va + + + “a Qi Q2 Q3 Q4 mActual ™Forecast * Exdudes acqmisition costs, pension settlanent 9S) ** Recognizedonlya partial quarter of NB&T charges and other non-core expense items € expen
Slide 8: Strategic Road Map
Strategic Road (a * GreatPlace to Work Our Way of Life Asset Quality Compliance / Regulatory Operational Risk Information Security Change Management Execution Risk Reputational Risk Excellent Financial Results and Shareholder Return . “Best Community Bankin America” Great Place to Bank + Meaningful
Slide 9: Strategic Priorities
tratesic Priontie © * Primary emphasis on revenue growth Positive . @peniin ¢ Disciplined expense management te 5 ¢ Expand revenue vs. expense growth gap beyond 2% jE MS ENS © Target efficiency ratio below 65% y . < Superior * Balance growth with prudent credit practices Asset ¢ Improve diversity wi
Slide 10: Long-term financial targets
Net interest margin Fully-tax equivalent) 3.60% to 3.80% Totalrevenue growth Total expense growth 55% 24.52% 17.58% Non-interest income to total revenue 31.80% Efficiency 65.81% 7 NPAs to total loans + OREO 0.67% 1.29% 0.70% to 1.00% Net charge-offs to average loans (1) 0.35% 0.15% 0.30% to 0.50% Lo
Slide 11: Product and service comparison with peer banks
Wer = Pak United Nation — Bank Community Naiond = Trut Online Loan Appiicaions No nine Financial Managemect Yer | ACH, Wires Stop Payments Yes es Yer No No Yer ll Par Specific to Motile Yes | ves | ve | ves | Yes Yes Ye [ Ye | ve | We | ves /iPhone/iPad/Andriod Apps Yes Yes Yes Yes Yes “Yes Yes Yes
Slide 12: Loan portfolio mix
‘Residential ‘Real Estate 27.996 ‘Data as of September 30, 2015 12
Slide 13: Trailing Months Revenue from September 30, 2015
‘Trailing 12 Months Reverme from September 80, 2015)
Slide 14: Our Businesses
Our Businesses * Commercial Banking — Commercial loans were up $18 million (annualized rate of >6%6) in Q3 — Strong pipeline with $60 mullionin scheduled fundings in Q4 — Legal lending lit over $40 nullion with NB&T * Retail Banking — Noi-interest bearing DDA now at 25% of total deposits, up from 23
Slide 15: Footprint Expansion
© L777 nsion * Bank opportmities + Wealth management and insurance opportunities + Shale oil / gas activity Southwest Ohio + Wealth management or insurance opportunities to complement NB&T. + Attractive growth and market dynamics Footprint Development + Increase market share in all areas rT + Insura
Slide 16: Floor-to-ceiling renovations
— Floor-to-ceiling renovations — Completed renovations of our Midwest and Ohio Heritage branches; North Akron is im process — NB&T branch refresh will be phased im dunng 2015 — Used national branch design experts — All delivery channels “Best in Class” — Consistent look with our new brand — More eng
Slide 17: Our M&A Strategy
Our M&A Strategy, * Optimize our current footprint — Gain market share and improve operating effiaency — Create more density through cdisaplined expansion Target areas with characteristics similar to existing markets — Expand along major transportation routes — Focused on “mid-major” communities or
Slide 18: Appendix
Appendix
Slide 19: Diluted EPS and annual financial metrics
$1.92 $1.63 $1.35 Diluted EPS Return on common equity 9.52% 7.92% 6.16% Return on assets 1.11% 0.91% 0.74% F Pre-provision net revenue to assets (1) 1.41% 1.26% 1.10% Net interest margin (FTE) 3.36% 3.23% 3.45% §| Efficiency ratio 69.55% 71.90% 75.37% Tier 1 capital 14.06% 12.42% 14.32% Total capita
Slide 20: Quarterly financial metrics
4Q 1Q 2Q 2014 2014 2015* 2015* Diluted EPS $0.32 $0.28 $0.04 $0.27 $0.22 Return on equity 5.84% 5.03% 0.78% 4.69% 3.89% Return on assets 0.73% 0.66% -0.10% 0.61% 0.51% NOVOWUE UCC pre provision netrevenue to assets (1) 0.96% 0.99% 0.00% 0.99% 1.40% Net interest margin (FTE) 3.45% 3.53% 3.46% 3.46% 3
Slide 21: Peer comparison
TM Fee Revenue. Average Assets to ag. L576 1.16%, ee 1.31% 6.5% 5.1% PEBO Peers _$15B__| | PEBO Peers _ $1-5B PEBO Peers _‘$15B__| LTMPriceto Eamings = Dividend Yield pares 257% 9.40% 2.07% (52.00% 18.205 18.44x 37.40% 26.58% PEBO Peers _$1-5B PEBO Peers _‘$1-5B PEBO Peers $1-5B Pears include’ CONE,
Slide 22: Non-GAAP Measures
Non-GAAP Measures PRE-PROVISION NET REVENUE Preprovision net revenue (PPR) represents a non-GAAP financial measure commonly used to evaluate the operating performance and trends of financial services companies, including Peoples. PPNR represents the earnings capacity that can be either retained in o
Slide 23: Non-GAAP Measures
Non-GAAP Measures (Presented onan annvalizedbasis 7 Peoples PRE-PROVI! ION NET REVENUE Pre-provision net revenue (PPNR) represents a non-GAAP financial measure commonly used to evaluate the operating performance and trends of financial services companies, including Peoples. PPNR represents the earni
Slide 24: Non-GAAP Measures
Non-GAAP Measures Peoples uses tangible common equity ratios to evaluate the adequacy of Peoples’ stockholders’ equity. Such ratios represent non-GAAP financial information since the calculations exclude the impact of intangible assets acquired through acquisitions on both total stockholders’ equity
Slide 25: Non-GAAP Measures
Non-GAAP Measures Peoples uses tangible common equity ratios to evaluate the adequacy of Peoples’ stockholders’ equity. Such ratios represent non-GAAP financial information since the calculations exclude the impact of intangible assets acquired through acquisitions on both total stockholders’ equity
Slide 26: y Peoples ¢),
y Peoples ¢), Nasdaq: PEBO Investor Presentation 34 Quarter 2015